Adani Ports takes over Gopalpur port in Rs 3080 Cr deal

Adani Ports and Special Economic Zone Ltd (APSEZ) announced on Tuesday its acquisition of a majority stake in Gopalpur Port Limited (GPL).

| Updated: 26 March, 2024 4:36 pm IST

NEW DELHI: Adani Ports and Special Economic Zone Ltd (APSEZ) announced on Tuesday its acquisition of a majority stake in Gopalpur Port Limited (GPL).

APSEZ has secured a 56% share from the SP Group and a 39% share from Orissa Stevedores Limited (OSL), consolidating its position in the port with an enterprise value of Rs 3,080 crore.The deal is contingent on regulatory approvals and other standard conditions.

The company stated, “The acquisition is made at an enterprise value of Rs 3,080 crore, and the transaction is subject to statutory approvals and the fulfilment of other conditions and precedents.”Additionally, APSEZ may pay a contingent consideration of Rs 270 crores after 5.5 years, depending on certain agreed-upon conditions with the sellers.

Located on India’s east coast, GPL boasts a handling capacity of 20 million metric tonnes per annum (MMTPA). The Odisha Government granted GPL a 30-year concession in 2006, which includes options for two 10-year extensions.

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Karan Adani, Managing Director of APSEZ, said “The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighbouring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach.”

Gopalpur Port, a deep draft, multi-cargo facility, handles a variety of dry bulk commodities such as iron ore, coal, limestone, ilmenite, and alumina. It is a pivotal asset for the mineral-based industries in the region, including iron & steel and alumina sectors.

GPL enjoys the autonomy to design and scale operations based on market demands, with over 500 acres of leased land for development and options for further expansion. The port’s connectivity is bolstered by its proximity to National Highway NH16 and a dedicated railway line linking it to the Chennai-Howrah main line, enhancing its logistical capabilities.

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